Supporting Micro and Small Scale Enterprises: What Can Be Learned From Donor Programs?

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1991-08

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Ohio State University. Department of Agricultural, Environmental, and Development Economics

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This paper summarizes the evaluations of micro and small scale enterprise projects financed by the U.S. Agency for International Development, the European Investment Bank, the International Labor Office, the United Nations Capital Development Fund, the United Nations Development Program, and the World Bank. The evaluations suggest that a consensus is emerging towards the idea that minimalist credit projects offer the best method of providing sustainable services valued by small scale entrepreneurs. There is considerable disagreement, however, about the economic role that micro and small scale enterprises play in the economies of developing countries, and the economic benefits obtained from assistance programs designed to support them if they have debatable efficiency and prospects for growth.

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